February 23, 2024

On-chain data reveals that there is a slight increase in the volume of Ripple token burns as users migrate to the Xahau Network. Originally, the XRP Ledger burn mechanism was created for controlling spam transactions.

However, the XRP burns have increased after the launch of the Xahau network, an XRP Ledger sidechain that enables smart contracts to use the Hooks protocol.

XRPScan Data Shows Uptick in Token Burns 

Following the launch of the Xahau sidechain, users must burn XRP to mint XAH tokens. Following an update to the Xaman wallet in 2023, users can switch between the XRPL and Xahau using the same address. 

Additionally, with this wallet, users can also enjoy multi-network support, a new identity, and access to a rich digital tool kit. 

Data from XRPScan reveals that the number of XRP burnt has increased from mid-December 2023. According to the data, on December 18, almost 7000 XRP tokens were burnt.

On January 2, 2025, 10,134 Ripple tokens were burnt, which set a new record. This increase is credited to XRP holders burning the tokens to mint XAH. 

Meanwhile, on December 30, the XRPL processed an all-time high of 6.8 million transactions. The previous record was approximately 5 million transactions per day in November 2021. 

 

On a global scale, XRP Ledger developers continue to drive to be a top payment solution provider. The latest development is the Outmoded global payment system to improve cross-border payments. 

This improvement will streamline vendor payments, settle payments instantly, improve transparency, and reduce costs. 

Ripple payments typically settle transactions in 3-5 seconds, enabling companies to handle urgent requests and balance their books faster. Now, companies can integrate Ripple Payments easily due to the current payment framework. 

This aligns with the fact that 97% of payment leaders believe that blockchain and digital assets will be vital to global financial systems. 

How is Ripple’s Native Coin Faring Today?

While these token burns are an anti-inflationary measure, it is not yet evident if they affect XRP’s price. The price of XRP has declined by over 7% in the past week. 

Despite the token burns and positive ecosystem metrics, XRP is declining on the daily chart. This retracement correlates with the dip in Bitcoin’s value due to ongoing ETF speculation.  

Also, XRP dropped below the $0.58 support level to form a new support at $0.57, and if this support fails to hold, then further decline will likely occur. XRP has dropped below the median band of the Donchian Channel (DC) indicator, which is a bearish signal. 

Furthermore, the Relative Strength Index (RSI) is declining with a value of 37.54 and approaching the oversold region below 30. If the RSI drops below 30, then the decline for XRP will continue. 


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